FOR the first time in three years the recruitment industry is not only sensing that the economy is starting to recover – but it’s actually seeing positive proof of it. And when the recruitment sector starts to get busier then you can usually be sure that business in general is more confident. Recruitment is often the litmus test of recovery – when employers start taking on new staff then it invariably follows that growth and productivity are on the up.
We at Acorn have been experiencing sure signs of growth over the last year – indeed the last 12 months are culminating in our best ever year since we started out 18 years ago. Yes, the pace of recovery is slow, but it does appear at the moment to be steady; as 2010 has worn on we have seen an increasing demand for recruitment from employers across a number of sectors not just here in Wales but throughout the UK, and particularly in IT, in technical and engineering roles, and in manufacturing.
The fastest growth is of course in areas of temporary and contract recruitment, where businesses need the flexibility to meet a growing consumer demand and increased productivity, but remain cautious in the face of an uncertain medium-term economic picture. Though we have also seen growth in the number of permanent placements we’re making, and the expectation is that this too will develop progressively as confidence beds in.
Next year we’re expecting that these sectors will continue to develop, and also possibly in logistics, construction, healthcare, and possibly the hotel and hospitality sector. An improvement in the construction sector is also another key indicator of a recovery, and we have been witnessing some positive signs across this area, though again primarily in temporary and contract roles.
The latest UK recruitment forecasts suggest a return to a growth in permanent construction recruitment next year, and if that proves to be true, it will be the clearest sign yet that there is a strong and sustained recovery. But it’s not just us at Acorn who are experiencing these positive signs of recovery – according to a recent report there are particularly positive messages generally coming from employers across Wales where businesses are planning to increase staffing levels during the first three months of next year, and where confidence is standing at its strongest level since the first quarter of 2008.
It’s all painting a much brighter picture for next year. But we must be realistic and not expect too much too soon. There is no doubt growth in some sectors will continue, but it will almost certainly continue to be slow and steady – I quite liked the analogy that was suggested to me the other day of a “bath tub-shaped” recovery. There is also the great unknown of how the public sector cuts will affect us in the next 12 months, and for how long, as their impact is felt further down the supply chain. And of course, how much of the economy will ultimately be picked up by the private sector as the public sector retracts.
Despite current unemployment levels, there still remain some skill shortages; particularly in areas like IT, in energy, and also in many management areas generally, where the slow-down in the numbers of professionals showing a willingness to move jobs is impacting on the quantity of good applicants for some types of roles. Thankfully though, we at Acorn are entering 2011 on the back of our most successful year and, although difficult trading conditions remain, we continue to be better placed than most to support businesses to operate as flexibly and competitively as possible.
Finally, allow me to touch on the parallel fortunes of the mighty Newport County. They had a fantastic 2009-10 season, and the current season has carried on in the same vein, with the pace of its charge back to the Football League reflecting that of the economy generally – perhaps not quite as quick as we’d like, but hopefully steady and assured all the same.
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